Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q4 2021 Earnings Presentation
22 slides from Varun Beverages's earnings presentation, Feb 3, 2022
Slide 1: Regulation 30 filing cover letter to stock exchanges
C o rporate O ff : Plot No.31, Institutional Area, S ec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 « Fax: +91-124-4643303/04 E-mail : info@ rjcorp.in • Visit us a t : www.varunpepsi.com CIN N o . : L74899DL1995PLC069839 February 3, 2022 To, National Stock Exchange of India Ltd. BS
Slide 2: Varun Beverages Limited Q4 & CY2021 Results Presentation
February 3, 2022 (a PepsiCo franchisee) Varun Beverages Limited Q4 & CY2021 Results Presentation
Slide 3: Disclaimer
Disclaimer (a PepsiCo franchisee) This communication contains certain forward-looking statements relating to the business, financial performance, strategy and results of Varun Beverages Limited (“VBL” or the “Company”) and/ or the industry in which it operates. Such forward-looking statements involv
Slide 4: Table of Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Q4 & CY2021 Results Overview 4 Performance Highlights 5 Sustainability Initiatives 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the beverage industry Operations spanning across 6 countries – 3 in the Indian Subcontinent (India, Sri Lanka, Nepal) contribute ~81% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~19% for fiscal year 2021 Over 30 years st
Slide 6: Brands licensed to VBL
Brands licensed to VBL (a PepsiCo franchisee) Brands licensed by PepsiCo: Dairy Based Beverages* Carbonated Soft Drinks Mango Shake Carbonated Juice Based Drinks Energy Drink Club Soda Ice Tea Cold Coffee Belgian Choco Fruit Pulp / Juice Based Drinks Kesar Badam Sports Drink Packaged Water Elaichi *
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 30 yrs + Production Facilities Association Trademarks Sales & Distribution – GTM & Logistics Formulation through Concentrate In-outlet Management – Visi-Coolers Product & Packaging
Slide 8: Key Player in the Beverage Industry – Business Model
Key Player in the Beverage Industry – Business Model (a PepsiCo franchisee) VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN MANUFACTURING Concentrate Other Raw (PepsiCo) Materials Bottling 37 state-of-the-art production facilities SOLID INRASTRUCTURE 100+ depots DISTRUBUTION & WAREHOUSING 2,000+
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q4 & CY2021, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, “We have ended the year on a strong and volume growth has translated to enhanced resilient note, delivering a top line growth of 37% operating performa
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) COVID-19 Second Wave Impact: • The resurgence of Covid 19 pandemic caused significant disturbance and led to slowdown in economic activity and business operations of the Company in the month of May. However, as covid cases declined the business operations of t
Slide 11: Performance Highlights (Q4 & CY 2021 and CY 2020)
Performance Highlights (Q4 & CY 2021 and CY 2020) (a PepsiCo franchisee) Net Sales EBITDA 37.7% PAT 108.8% 36.8% 16,546 7,461 88,232 Not Rs. million Measurable Rs. million Rs. million 12,019 64,501 3,573 20.5% 30.3% 1,722 2,076 18.6% 18.8% 326 13,309 17,343 12.9% 12.0% -72 Q4 2020 Q4 2021 2020 2021
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2021 Q4 2020 YoY(%) CY 2021 CY 2020 YoY (%) 1. Income (a) Revenue from operations 17,649.36 13,513.39 30.6% 89,582.91 65,557.91 36.6% (b) Excise Duty 306.01 204.48 49.7% 1,350.61 1,056.49 27.8% Net Revenues 17,3
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs. million) 31-Dec-21 31-Dec-20 Particulars (Rs. million) 31-Dec-21 31-Dec-20 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 4,330.33 2,886.89 (a) Property, plant and equipment 57,279.71 58,271.88 (b) O
Slide 14: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • During Q4 CY2021, sales volume grew by 28.5% to 112.0 million cases. For CY 2021 total sales volume grew by 33.8% to 569.1 million cases driven by strong recovery in demand and low base of CY 2020
Slide 15: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 30,053 million as on Dec 31, 2021 as against Rs. 30,158 million as on Dec 31, 2020. Net debt reduced marginally, despite increase in CWIP by ~Rs. 4,300 mn and incremental stocking of
Slide 16: Performance Highlights (2017 – 2021)
Performance Highlights (2017 – 2021) (a PepsiCo franchisee) Revenue PAT PAT Margins 88,232 8,500 15% CAGR (2017-21) – 21.8% 7,461 71,296 7,500 CAGR (2017-21) – 36.6% 13% Rs. million Rs. million 64,501 6,500 11% 51,053 5,500 4,722 9% 40,034 4,500 3,573 2,999 8.5% 7% 3,500 2,141 6.6% 5% 2,500 5.9% 5.5
Slide 17: Sustainability Initiatives - Water Stewardship
Sustainability Initiatives - Water Stewardship (a PepsiCo franchisee) Parameter (mn KL) CY2019 CY2020 CY2021 Water Recharge Ratio# Water Usage Ratio(WUR)* Audited Audited Provisional 2.72 Target Total water consumption (A) 4.12 3.74 4.86 2.24 min. Beverage production (B) 2.12 1.95 2.57 2.00 1.94 1.9
Slide 18: Sustainability Initiatives – Plastic Waste Management
Sustainability Initiatives – Plastic Waste Management (a PepsiCo franchisee) Weight Reduction of Pre-forms (grams) Plastic Waste Recycling % Plastic usage reduction through light weighting of Preforms and Target for a non-COVID year – Closures for PET bottles. Phase- 52.5 50.7 47.0 2023 onwards wise
Slide 19: Sustainability Initiatives - Climate Action
Sustainability Initiatives - Climate Action (a PepsiCo franchisee) Million Kg CO2e Grams / litre* Energy Efficiency GHG emissions are audited by Deutsch Quality Systems (litre/kWh) GHG CY 2020 CY 2021 CY 2020 CY 2021 (India) Private Limited (DQS Emissions India), an Internationally 6.7% Scope 1 23.9
Slide 20: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited (VBL) Q4 & CY 2021 Earnings Conference Call Time • Thursday, February 3, 2022 at 3:30 PM IST Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 International Toll Free Number • Hong Kong: 800 964 448 • Singap
Slide 21: About Us
About Us (a PepsiCo franchisee) Varun Beverages Limited (“VBL” or the “Company”) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large select
Slide 22: Thank You!
Thank You!